However, co-living arrangements carry unique opportunities and challenges for rental property owners and managers. This guide highlights the rise of co-living spaces, key considerations for rental property owners and managers, and strategies for successfully marketing these distinctive residences.
Understanding the Rise of Co-Living Spaces
Co-living is a real estate term tied to the rise of housing startups creating homes designed to be shared by five or more adult roommates. Co-living spaces range from single-family homes modified for non-related residents to high-rise buildings transformed into dormitory-style lodging. In broader terms, co-living also encompasses master-planned communities or simply living with roommates.
A variety of factors are fueling the increase in popularity of co-living spaces. For example, increasing rents in larger cities have caused many renters to share space with non-related adult roommates. Additionally, the remote work culture has prompted renters to seek out community in new ways. Consequently, co-living appeals strongly to city dwellers, professionals, students, and remote workers.
Key Considerations for Property Managers
Rental property owners and managers considering the co-living market will come across both possibilities and obstacles. Some of the key factors to consider include:
- Lease Structures & Flexibility: There are pros and cons to renting a single unit or property to multiple tenants. For example, individual leases can offer renters more flexibility while allowing rental property managers to benefit from steady rental income and lower turnover costs. However, this option requires managing individual leases and lease renewals for several tenants, which increases a property manager’s workload. An alternative is to offer group leases, which can reduce lease management but may lead to other issues.
- Furnishings & Shared Amenities: Another consideration involves how to design a co-living space for community living. Many co-living properties feature communal spaces to support interaction. Property managers can appeal to co-living renters by providing communal indoor and outdoor spaces. Offering furnishings, décor, and shared amenities ensures residents are comfortable while maintaining equality within communal spaces.
- Tenant Screening & House Rules: Co-living rental properties also involve ensuring compatibility among co-living tenants. Because residents of a co-living property are non-related individuals, they may seek housemates with lifestyles and personalities that complement their own. This poses challenges for rental property managers, who must oversee expectations within communal spaces. A clear set of house rules helps define responsibilities and set expectations for conduct among non-related residents.
- Legal & Zoning Regulations: Local laws regarding shared housing are another factor. Many municipalities enforce regulations about the number of roommates and/or residents in different housing types, making it necessary to review requirements before offering a co-living rental.
How to Successfully Market Co-Living Rentals
There are certain unique elements of marketing a co-living rental property, making it necessary to present the aspects that attract renters to co-living spaces. In particular, your messaging should focus on benefits like cost savings, community engagement, and convenient location compared to traditional housing choices.
Renters looking for co-living spaces usually want properties with easy access to urban centers as well as local arts and entertainment options. They frequently use online channels such as social media and rental listing sites to locate and apply for rental homes. By highlighting key features in your marketing and embracing digital approaches, you can easily attract the type of renters searching for co-living rental homes.
Is Co-Living the Future of Rental Housing?
There are countless reasons to explore co-living rentals as a practical and profitable option for your properties. Even so, co-living may not serve as the right option for every rental property or region. This is why fully understanding all the benefits and challenges of managing co-living spaces is such an important first step.
If you’re interested in managing or investing in co-living spaces, please reach out to your local Real Property Management Trust office. We are here to deliver the resources you need to make knowledgeable real estate decisions in Ontario and surrounding areas. Our experts can provide recommendations on local trends, investment opportunities, and effective operations. Reach out to us or call 909-577-5778 to discover more details!